ECB monetary policy defended against criticism from Germany – Reuters Germany

Frankfurt the European Central Bank (ECB) maintains despite strong criticism from Germany at its ultra-loose course.

After the comprehensive package of measures in March the monetary authority policy rates but not groped to their council meeting in Frankfurt ECB headquarters on Thursday to continue. The key phrase for the supply of commercial banks with central bank money remains at 0.0 percent, its lowest level since the start of monetary union. The Euro-guards have also started, as planned to expand its monthly asset purchases to 80 billion euros from 60 billion previously. In June, they want to start with acquiring corporate bonds.

“We have the mandate to maintain price stability for the to secure entire euro zone – not only for Germany, “Draghi said in response to the recent attacks by German politicians. The ECB follow the law and not just politicians. In the Governing Council have unanimously prevailed the view to defend the independence of the central bank. The monetary policy of the ECB recipes are not much different than in other parts of the world. “And our actions have an effect. They are effective. Give them only time,” said the Italian. According to Draghi, the economic recovery is still hampered by the slow implementation of reforms in the euro area. “Other policy areas must show more determination, both at national and European level.”

Several Union politicians have asked the federal government to press for a change in monetary policy. Federal Finance Minister Wolfgang Schaeuble expressed concern that the ECB could convey Euro-skeptic efforts. The German banking industry has long complained that zero interest rates and penalty interest to make them more difficult, sufficient to generate returns in classic interest income. Life insurers have problems redeeming their customers promised returns promised.

Since March 2015 ECB keeps its monetary floodgates particularly wide open. Since the ECB and the national central banks of the euro countries to buy government bonds massively. The controversial program want Draghi and his Fed colleagues contribute to economic growth in the euro area and driving the low inflation upwards. The program, in addition to government bonds also includes mortgage bonds, mortgage papers, Regional Bonds and soon corporate bonds, is now applied to 1.74 trillion euros and is still running until the end of March 2017th Banks should be forced out of the markets and funds rather than sufficient credit to the economy.